I have also tried it loading the game with Change Resolution (Recommended) as well as not changing the resolution so that it is small

To my understanding I followed these steps

Launch the 32-bit version, create a new custom database, then a new application fix. Navigate to the affected game executable, select it, and then, on the second page of fixes, look for "ForceDirectDrawEmulation."

To make sure the fix stays, right-click the database and select "Install" which will apply the fixes when you launch the game outside the Compatibility Administrator.

I downloaded the ACT 5.6 ApplicationCompatibilityToolkitSetup.exe

Installed it

Ran the Compatibility Admin 32-bit

Underneath Custom Database there was a New Database

I right clicked it; create new > application fix

the Create new Application fix, box pops up

filled in the name of the program to be fixed "Geneforge 1"

filled in the name of the vendor for this program "Spiderweb Games"

I clicked on browse & went to the steam game folder

selected Geneforge.exe

clicked next

Now the Compatibility modes appears

I DID NOT select "Run this program in compatibility mode"

I instead clicked NEXT to go to the 2nd page

scrolled down to find ForceDirectDrawEmulation

put a checkmark next to ForceDirectDrawEmulation

clicked next

clicked finish

the menu closed

Now, clicked on the Database & click the SAVE icon

Database Name box appeared

I named it "Mouse Fix - Geneforge 1"

clicked Ok

a NEW save box appears & is pointing to the Steam Geneforge 1 folder

I named that file "Geneforge 1 2017-11-24" and it saved as a .sdb

then I Right Clicked on the DataBase & clicked Installed

a new window pops up "The Database 'Mouse Fix - Geneforge 1' was successfully installed

Load Geneforge 1 using steam

game loads

mouse cursor is still messed up & did not change at all (ie it moves very awkward & sluggish)